Discount chain Dollar Tree, famous for selling products for around a dollar, announced it would raise the price cap to $7 for some store items.
CEO of Dollar Tree Rick Dreiling said in a recent fourth-quarter earnings call:
“This year, across 3,000 stores, we expect to expand our multi-price assortment by over 300 items at price points ranging from $1.50 to $7.”
It appears not even much-needed discount stores cannot escape the wrath of “Bideonomics.”
Due to rampant inflation under Joe Biden, Dollar Tree was previously forced to raise their prices from $1 to $1.25 in 2021.
However, since inflation shows no signs of going down, the store introduced a price cap of $7 in the fourth quarter.
A $5 price cap will be temporarily set at the beginning of June.
The news comes just weeks after Dollar Tree announced it would close up to 1,000 stores of its sister chain, Family Dollar.
Dollar Tree says they will raise their max price to $7 pic.twitter.com/HBEQqpMAmN
— Dexerto (@Dexerto) March 26, 2024
USA Today reported:
Discount retail giant Dollar Tree said that it would raise the price cap in its stores to $7 in its fourth quarter earnings call earlier this month.
“This year, across 3,000 stores, we expect to expand our multi-price assortment by over 300 items at price points ranging from $1.50 to $7,” Dollar Tree CEO Rick Dreiling said in the call on March 13.
A $5 cap was set in June, according to Yahoo Finance. In 2021 the company raised the base price of items to $1.25.
The higher cost items will include food, pet and personal care items, though not all items will be at the $7 price cap.
As the Daily Fetched reported, 49 percent of Americans say rising inflation under Joe Biden is eroding their living standards.
“After stabilizing earlier this year, concerns about inflation have grown again,” reads the University of Michigan Surveys of Consumers report.
The survey shows that almost half of those polled in early October say high prices were eroding their living standards.
That number is up from last month’s 39 percent, matching the all-time high notched in July 2022.
The Epoch Times reports:
Inflation, as measured by the Consumer Price Index (CPI), shot up at a furious pace through 2021 and narrowly missed breaking through the 10 percent psychological barrier by mid-2022.
The pace of rising prices hit a recent peak of 9 percent in June 2022, a multi-decade high that later fell to 3.1 percent by June 2023—but it has jumped back up to 3.7 percent, bringing with it renewed concerns about inflation.
In addition to a record share of consumers saying that high prices are undercutting their standard of living, the year-ahead inflation expectations jumped from 3.2 percent last month to 3.8 percent in October.
READ: ‘Bidenomics:’ Another Major Retailer Files for Bankruptcy
